Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 959 - HC - Income TaxAllowability of provisions for warranty by ITAT - whether the provision made by the assessee has been done in a scientific manner and whether it has followed the conditions stipulated by the Hon'ble Supreme Court in the case of Rotork Controls India Pvt. Ltd. [2009 (5) TMI 16 - SUPREME COURT] - Standing Counsel for the appellant would contend that the decision of this Court in the case of Renowned Auto Products [2013 (7) TMI 392 - MADRAS HIGH COURT] would bind this Court and the decision of the High Court of Karnataka will not be a binding precedent of this Court - HELD THAT:- The thin but marked difference is that the decision of the High Court of Karnataka is in the assessee's own case [2020 (8) TMI 768 - KARNATAKA HIGH COURT] in respect of the correctness of the provision made by the assessee for warranty. These transactions are identical and the assessee has been consistently following the said method for several assessment years, which has been noted by the High Court of Karnataka as well as by the Tribunal in the impugned order. Therefore, we are of the considered view that the Tribunal and the CIT(A) rightly held that the assessee had followed the scientific method and complied with the directions issued by the Hon'ble Supreme Court in Rotork Controls India Pvt. Ltd. The above reasons, we find no good grounds to interfere with the order passed by the Tribunal. - Decided against revenue.
|